PSI PA REAL ESTATE PRACTICE EXAM
QUESTIONS AND ANSWERS 100% PASS
The economic characteristics of land are - ✔✔ - scarcity, location, and durability
A major difference between freehold and nonfreehold estates is that all freehold estates
- ✔✔ - are of indeterminable duration
An easement can be terminated by - ✔✔ - merger of titles
The land description T3N, R4W Principal Meridian refers to what method of property
description? - ✔✔ - Rectangular survey
Tenants are still in their rental property even though their lease has expired. The
landlord has given them written notice to quit and refused to accept rent. They are - ✔✔
- tenants at sufferance
A property is encumbered by a first mortgage of $60,000 and a second mortgage of
$23,500. The property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale are included in these
balances. Which of the following statements is FALSE regarding the distribution of
funds? - ✔✔ - The second mortgage receives nothing unless he forced the foreclosure
auction.
At the time of harvest, crops that require annual planting are generally considered to be
- ✔✔ - personal property
A property owner died, having willed his property to his two daughters. There is still a
chance that they could lose the land for a variety of reasons, but it CANNOT be taken
through - ✔✔ - escheat
,An environmental impact statement typically describes the effects of a proposed on
factors such as - ✔✔ - public health and safety
A lawsuit for inverse condemnation may be brought by - ✔✔ - a homeowner
A deed restriction is applicable to the activities of - ✔✔ - all owners, present and future
The terms "littoral," "riparian," and "appropriative" refer to - ✔✔ - water rights
If conditions for purchase are included in a deed and these conditions are violated, what
is the penalty? - ✔✔ - Return of the property to the original owner.
The PRIMARY purpose of zoning ordinances is to - ✔✔ - implement a local master plan
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - ✔✔ - $250,000
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - ✔✔ - Business district zoned for a six-story office building.
A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest - ✔✔ - a competitive market analysis to determine the
property's value.
A formal appraisal will ALWAYS be REQUIRED when the - ✔✔ - lender wants to sell
the mortgage to the secondary market.
,When compiling a competitive market analysis, a broker would look for comparable
properties that - ✔✔ - were located near the property being listed.
All of the following are methods to calculate the reproduction or replacement cost of a
building EXCEPT the - ✔✔ - straight-line method
Which of the following approaches MOST reliably estimates the sales price of a single-
family residence? - ✔✔ - Market data
The purpose of usury laws is to regulate - ✔✔ - interest rates charged by lenders.
Regulation Z addresses all of the following issues EXCEPT - ✔✔ - usury.
Which of the following statements about discount points is FALSE? - ✔✔ - They are
computed as a percentage of the selling price.
An adjustable rate loan should include all of the following elements EXCEPT - ✔✔ -
negative amortization
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ✔✔ - demand immediate payment of the entire note.
The FHA functions MOST like - ✔✔ - an insurance company.
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend
a mortgage banker, instead of a mortgage broker, for all of the following reasons
EXCEPT - ✔✔ - more variety of loan programs available.
, When a property owner uses his home as collateral for a loan and creates a lien in favor
of the lender, title is held by the - ✔✔ - mortgagor.
A broker, acting as agent for the seller, presents an offer to buy from the broker's former
college roommate. The broker knows that the buyer will increase the amount of the offer
if the seller turns down the offer. When presenting the offer, the broker should - ✔✔ - tell
the seller that the buyer will pay more.
A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is - ✔✔ - an agent to the broker and a subagent to the
principal.
An agency relationship between a property owner and a property manager is usually
created by - ✔✔ - a management agreement.
In an exclusive right-to-sell listing, an owner lists the property for sale with how many
brokers? - ✔✔ - One.
A broker supplies the financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which of the following
BEST describes this relationship? - ✔✔ - Agency coupled with an interest.
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing
contracts, the broker has earned his commission when - ✔✔ - the seller accepts the
offer.
One common method for controlling the problems created by conflict of interest in dual
representation is - ✔✔ - allowing a broker to designate separate salespeople within the
company as legal representatives of each of the clients.
QUESTIONS AND ANSWERS 100% PASS
The economic characteristics of land are - ✔✔ - scarcity, location, and durability
A major difference between freehold and nonfreehold estates is that all freehold estates
- ✔✔ - are of indeterminable duration
An easement can be terminated by - ✔✔ - merger of titles
The land description T3N, R4W Principal Meridian refers to what method of property
description? - ✔✔ - Rectangular survey
Tenants are still in their rental property even though their lease has expired. The
landlord has given them written notice to quit and refused to accept rent. They are - ✔✔
- tenants at sufferance
A property is encumbered by a first mortgage of $60,000 and a second mortgage of
$23,500. The property has just been sold at a foreclosure auction to a speculating
investor for $88,000. Assume that all costs of the foreclosure sale are included in these
balances. Which of the following statements is FALSE regarding the distribution of
funds? - ✔✔ - The second mortgage receives nothing unless he forced the foreclosure
auction.
At the time of harvest, crops that require annual planting are generally considered to be
- ✔✔ - personal property
A property owner died, having willed his property to his two daughters. There is still a
chance that they could lose the land for a variety of reasons, but it CANNOT be taken
through - ✔✔ - escheat
,An environmental impact statement typically describes the effects of a proposed on
factors such as - ✔✔ - public health and safety
A lawsuit for inverse condemnation may be brought by - ✔✔ - a homeowner
A deed restriction is applicable to the activities of - ✔✔ - all owners, present and future
The terms "littoral," "riparian," and "appropriative" refer to - ✔✔ - water rights
If conditions for purchase are included in a deed and these conditions are violated, what
is the penalty? - ✔✔ - Return of the property to the original owner.
The PRIMARY purpose of zoning ordinances is to - ✔✔ - implement a local master plan
An appraiser MUST be licensed or certified to handle Federally related work on
residential property valued at more than - ✔✔ - $250,000
If all other factors are equal, in which location is a parking lot likely to bring the highest
sales price? - ✔✔ - Business district zoned for a six-story office building.
A prospective seller asks a salesperson to recommend a listing price for a property. The
salesperson should suggest - ✔✔ - a competitive market analysis to determine the
property's value.
A formal appraisal will ALWAYS be REQUIRED when the - ✔✔ - lender wants to sell
the mortgage to the secondary market.
,When compiling a competitive market analysis, a broker would look for comparable
properties that - ✔✔ - were located near the property being listed.
All of the following are methods to calculate the reproduction or replacement cost of a
building EXCEPT the - ✔✔ - straight-line method
Which of the following approaches MOST reliably estimates the sales price of a single-
family residence? - ✔✔ - Market data
The purpose of usury laws is to regulate - ✔✔ - interest rates charged by lenders.
Regulation Z addresses all of the following issues EXCEPT - ✔✔ - usury.
Which of the following statements about discount points is FALSE? - ✔✔ - They are
computed as a percentage of the selling price.
An adjustable rate loan should include all of the following elements EXCEPT - ✔✔ -
negative amortization
A borrower has defaulted on the mortgage. The mortgage contains an acceleration
clause. This permits the lender to - ✔✔ - demand immediate payment of the entire note.
The FHA functions MOST like - ✔✔ - an insurance company.
In helping a buyer to select a lender, if the buyer believes he has good credit and his
income is documentable as a salary and by tax returns, the licensee might recommend
a mortgage banker, instead of a mortgage broker, for all of the following reasons
EXCEPT - ✔✔ - more variety of loan programs available.
, When a property owner uses his home as collateral for a loan and creates a lien in favor
of the lender, title is held by the - ✔✔ - mortgagor.
A broker, acting as agent for the seller, presents an offer to buy from the broker's former
college roommate. The broker knows that the buyer will increase the amount of the offer
if the seller turns down the offer. When presenting the offer, the broker should - ✔✔ - tell
the seller that the buyer will pay more.
A salesperson lists a property with a contract that allows for subagency and dual
agency. The salesperson is - ✔✔ - an agent to the broker and a subagent to the
principal.
An agency relationship between a property owner and a property manager is usually
created by - ✔✔ - a management agreement.
In an exclusive right-to-sell listing, an owner lists the property for sale with how many
brokers? - ✔✔ - One.
A broker supplies the financing for a project to build condominiums with the stipulation
that he has the exclusive right to sell the completed condos. Which of the following
BEST describes this relationship? - ✔✔ - Agency coupled with an interest.
A broker has brought a ready, willing, and able buyer to a seller. In MOST listing
contracts, the broker has earned his commission when - ✔✔ - the seller accepts the
offer.
One common method for controlling the problems created by conflict of interest in dual
representation is - ✔✔ - allowing a broker to designate separate salespeople within the
company as legal representatives of each of the clients.
